Warner Bros. Discovery Plans CNN Spinoff Amid Declining Performance

Warner Bros. Discovery plans to split into two publicly traded companies by mid-2026, dividing its Streaming & Studios business from its Global Networks division, which includes CNN. This move signals a tough future for CNN, viewed as a declining asset weighed down by expensive talent and falling ratings. CFO Gunnar Wiedenfels, who will lead the Global Networks group, is expected to implement significant cost-cutting measures, targeting high salaries for top anchors and reducing staff, reversing the pay practices established under former CNN chief Jeff Zucker. Industry insiders predict massive layoffs and pay cuts across CNN’s talent, producers, executives, and reporters, with many seen as overpaid relative to their ratings contributions. Despite CNN’s struggles and left-leaning slant, some insiders express sympathy for lower-tier staff who will bear the brunt of these cuts amid a lack of union protections. The corporate restructuring reflects a broader effort to streamline operations and focus on more profitable segments like streaming and scripted entertainment under CEO David Zaslav.